29th September 2008
Confidence continues to plummet in the UK's financial sector and will infect other areas of the economy, according to the CBI.
And the decline of the industry appears to have quickened markedly, as a record balance of 59% of business respondents said they felt less positive than three months ago.
The balance of those reporting a decline in business volumes was its biggest since the CBI's quarterly financial survey began in 1989, with a balance of 51% saying they had fallen in the three months to early September.
In addition, the report's measure of profitability recorded a new record, with a balance of 49% saying their profitability had fallen, just as the cost of credit is increasing.
Furthermore, the CBI reports that around 8,000 financial jobs have been lost over the last three months, and that it expects another 12,000 to go by the end of the year.
Deputy director-general John Cridland said: "One year after the credit crunch first took hold, business volumes and profitability in the financial sector have taken their hardest hammering yet.
"Firms have become more fearful about the extent and length of the credit crunch, and they are now looking to cut more jobs and scale back investment.
"Difficulties in this crucial sector will have huge implications for the rest of the UK economy."
CBI gives grim financial outlook
Confidence continues to plummet in the UK's financial sector and will infect other areas of the economy, according to the CBI.
And the decline of the industry appears to have quickened markedly, as a record balance of 59% of business respondents said they felt less positive than three months ago.
The balance of those reporting a decline in business volumes was its biggest since the CBI's quarterly financial survey began in 1989, with a balance of 51% saying they had fallen in the three months to early September.
In addition, the report's measure of profitability recorded a new record, with a balance of 49% saying their profitability had fallen, just as the cost of credit is increasing.
Furthermore, the CBI reports that around 8,000 financial jobs have been lost over the last three months, and that it expects another 12,000 to go by the end of the year.
Deputy director-general John Cridland said: "One year after the credit crunch first took hold, business volumes and profitability in the financial sector have taken their hardest hammering yet.
"Firms have become more fearful about the extent and length of the credit crunch, and they are now looking to cut more jobs and scale back investment.
"Difficulties in this crucial sector will have huge implications for the rest of the UK economy."
Tags: Employment
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